Grab’s Big Convertible Bond Fuels Hopes About GoTo Deal

Grab Holdings Ltd. announced plans for a $1.25 billion sale of bonds convertible into stock, the biggest of its kind among Asian companies this year, fueling speculation it’s bulking up its warchest to take over rival Southeast Asian delivery-and-transport provider GoTo Group.

GoTo shares rose 8.2%, the most in two months, in Jakarta Tuesday after Singapore-based Grab, whose app is ubiquitous in Southeast Asia for ride hailing and food delivery, said it will issue convertible bonds that mature in June 2030, partly to fund potential acquisitions.